Explantation for each answers:
• Utilize Spot Instances globally
o Utilizing Spot Instances globally may lead to service interruptions and inconsistent performance, as
spot instance availability varies across different regions. It is not an optimal cost optimization strategy for
applications with varying demand patterns across regions.
• Use Reserved Instances for all regions
o Using Reserved Instances for all regions would result in underutilization and higher costs. It is not a
flexible approach for applications with varying demand patterns.
• Implement Auto Scaling based on regional demand
o Implementing Auto Scaling based on regional demand allows the company to dynamically adjust the
number of instances in each region based on the demand pattern. This strategy optimizes costs by
scaling up during peak demand and scaling down during periods of lower demand, ensuring optimal
performance and cost efficiency.
• Implement Multi-Region Load Balancing
o Implementing Multi-Region Load Balancing is useful for distributing traffic across multiple regions for
high availability and fault tolerance. While it contributes to performance optimization, it is not directly
related to cost optimization in the context of varying demand patterns.
• Implement Serverless computing for all applications
o Implementing Serverless computing for all applications may not be suitable as it depends on the nature
of the workload. Serverless computing can provide cost savings but may not be the most optimal
approach for all applications, especially those with varying demand patterns across regions.
Cost optimization strategies play a crucial role in managing cloud costs while maintaining optimal
performance. In the scenario of a software development company with applications experiencing varying
demand patterns across regions, the most suitable cost optimization strategy is to implement Auto
Scaling based on regional demand.
This approach allows for dynamic scaling of instances in each region, ensuring optimal performance
during peak demand and cost efficiency during periods of lower demand.
Utilizing Spot Instances globally may result in service interruptions, using Reserved Instances for all
regions leads to underutilization, and implementing Serverless computing for all applications may not be
suitable.
54/217
Multi-Region Load Balancing contributes to performance optimization but is not directly related to cost
optimization in the given context.
